Ally Bank High Yield CD (18 Month)

Ally Bank is an internet-only bank with no branches, and its High Yield CD is the plain vanilla member of a CD family that also includes Select CDs and a No Penalty CD. The 18 month term pays 4.25% APY as of October 14, 2026, a little above the 4.15% on the 12 month and 4.10% on the 60 month. There is no minimum deposit to open a CD, so the entry cost is effectively zero. The rate curve rises to 18 months and is uneven after that. The 12 month pays 4.15%, the 9 month 4.00%, and the 6 month 3.85%. Past 18 months the 24 and 48 month terms drop to 3.00%, while the 36 month pays 4.00% and the 60 month 4.10%, so compare each term rather than assuming a longer lock pays more or less. Ally also lists a 14 month Select CD at 4.15% and a 7 month Select CD at 3.85%. The same APY applies at every opening deposit tier on the 18 month term. Two Ally policies are worth knowing. The Ten Day Best Rate Guarantee gives you the best rate Ally offers for your term during the 10 days after you open, so a rate rise right after funding works in your favor. And Ally is currently adding a 0.05% Loyalty Reward when you renew a CD into any Ally CD. Interest compounds daily. The penalty schedule is tiered by term: 30 days of interest for terms under 3 months, 60 days for 3 to 24 months, 90 days for 25 to 36 months, 120 days for 37 to 48 months, and 150 days for 49 months or longer. An 18 month CD costs 60 days of interest to break. The penalty comes out of accrued interest first and then principal if needed, and it is waived if the account owner dies or is judged legally incompetent. Partial withdrawals are not allowed, and you cannot add funds mid-term, though you can schedule a transfer up to a year ahead to land during the 10 day grace period at maturity. This works for savers who want a CD with no minimum deposit and a 60 day exit penalty on terms up to 24 months. The 11 month No Penalty CD pays 2.80% APY, below Ally's own 3.10% savings rate shown in the same page data, so weigh the exit flexibility against the lower rate. If you want branches, Ally is not it.